Oil Stocks Drop As OPEC Plans Supply Increase, Raising Oversupply Fears

Oil stocks fell as OPEC and its allies signaled plans to increase production next month, raising oversupply concerns. Oil demand is rising too slowly to absorb the expected supply increase, posing a serious risk to the market. OPEC and OPEC+ have withheld production since the pandemic to support prices and are still keeping over six million barrels off the market. The group confirmed plans to increase supply in April, reinforcing its earlier decision. OPEC and non-OPEC producers may face a market share battle as oil demand grows too slowly to support widespread production increases.